Use the Following Codes to Indicate How the Cash Flow

question 85

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method.
-Obtained a long-term bank loan.

• A)Operating activity-add to net income
• B)Operating activity-deduct from net income
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

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Definitions:

Affirmative Social Responsibility

A concept where businesses and organizations actively contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Social Problems

Issues within a society that are viewed as undesirable or harmful, often requiring collective solutions.

Rationalizing

The process of justifying actions or decisions with logical reasons, even if those reasons are not the true underlying motivations.

Inner Circle Concept

A theory or model that suggests the importance of a close group or network of individuals that influence one's behavior, decisions, and success.